Hammond Power Solutions Inc. Q3 2026 Earnings Recap

Hammond Power Solutions shares fell 9.9% after earnings, with the likely pressure point being softer AEG product activity and a cautious near-term outlook for that business. Management cited Middle East disruption, deferred projects, slower activity in hydrogen and offshore wind, and pricing pressure—despite record consolidated sales and margins.

Key Takeaways

• Consolidated sales were $446.3 million, more than double the prior-year quarter, and adjusted EBITDA was $84 million; adjusted EPS was $3.13.
• Gross margin reached 34.4%. Power Magnetics sales rose approximately 66% year over year to $355.5 million, supported by volume, pricing, and stronger capacity utilization.
• Power Magnetics shipments exceeded bookings, reducing backlog modestly from Q2, though it remained approximately 61% above the prior-year level. Management said net bookings increased quarter over quarter.
• Integrated Electrical Solutions, primarily AEG, contributed $90.8 million in sales. Service was resilient, but product activity was softer amid project delays, longer sales cycles, and pricing pressure.
• HPS announced a Fort Worth facility that will add $250 million of capacity; meanwhile, management described Canada as slower and more competitive and flagged ongoing near-term challenges at AEG.